Major cryptocurrency exchange Coinbase is starting 2023 with more layoffs, letting go of another 20% of its employees in a second major wave of layoffs.<\/p>\n
Coinbase CEO Brian Armstrong officially announced<\/a> on Jan. 10 that Coinbase will cut 950 jobs as part of the company\u2019s measures to reduce the firm\u2019s operating costs by around 25% amid the ongoing crypto winter.<\/p>\n Armstrong emphasized that Coinbase is \u201cwell capitalized,\u201d and crypto \u201cisn’t going anywhere,\u201d but the firm has to proceed with layoffs in order to keep the \u201cappropriate operational efficiency.\u201d As part of a headcount reduction, Coinbase will be shutting down several projects with a \u201clower probability of success,\u201d the CEO noted, without specifying what projects will be terminated exactly.<\/p>\n \u201cIn fact, I believe recent events will ultimately end up benefiting Coinbase greatly,\u201d Armstrong stated, referring to the growing regulatory clarity and Coinbase\u2019s opportunities due to the failure of FTX. He added:<\/p>\n \u201cBut it will take time for these changes to come to fruition, and we need to make sure we have the appropriate operational efficiency to weather downturns in the crypto market and capture opportunities that may emerge.\u201d<\/p><\/blockquote>\n Coinbase\u2019s blog announcement is accompanied by the firm\u2019s 8k form filing with the United States Securities and Exchange Commission, which states<\/a> that Coinbase\u2019s audited financial statements for 2022 are not yet available.<\/p>\n Related:\u00a0Huobi confirms 20% layoffs, denies insolvency rumors<\/a><\/em><\/strong><\/p>\n As part of the restructuring plan to reduce its operating costs, Coinbase expects to spend about 149 million to $163 million, including $58 million to $68 million in cash charges related to employee severance and other termination benefits.\u00a0The Company expects execution of the plan to be substantially complete by the second quarter of 2023, the filing notes.<\/p>\n The latest layoffs come months after Coinbase initially reduced its headcount by 18%<\/a> in June 2022, with Armstrong citing a starting economic recession.\u00a0<\/p>\n<\/div>\n![\"Cryptocurrency](\"https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/76c1f599-995a-4766-882c-6c9a95eaa4d8.png\" "\\"Coinbase")